Question
The Reserve Bank of India lends money to commercial banks for a short period at a fixed rate to manage liquidity in the banking system. What is this rate called?
Option 1 : Repo rate
Detailed Solution
सही उत्तर Repo rate है।
The repo rate is the rate at which the Reserve Bank of India lends short-term funds to commercial banks. The reverse repo rate is the rate at which it borrows from them.
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prepsnap.in • GeneralQuestion:
The Reserve Bank of India lends money to commercial banks for a short period at a fixed rate to manage liquidity in the banking system. What is this rate called?
Correct Answer: Repo rate
The repo rate is the rate at which the Reserve Bank of India lends short-term funds to commercial banks. The reverse repo rate is the rate at which it borrows from them.